HQ 951169 - Country Of Origin of Pants; Assembly in Singapore of Jean Parts Made Elsewhere - United States International Trade Commision Rulings

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HQ 951169

April 1, 1993

CLA-2 CO:R:C:T 951169 PR

CATEGORY: CLASSIFICATION

Mr. Michael Chee, First Secretary
Embassy of Singapore
1824 R Street, N.W.
Washington, D.C.

RE: Country Of Origin of Pants; Assembly in Singapore of Jean Parts Made Elsewhere

Dear

This is in reply to your request of February 20, 1992, concerning the country of origin of pants. Our ruling on the matter follows.

FACTS:

Five samples and photographs were submitted. The sample marked A consists of woven panels and parts which, except for the buttons and zippers, are required for a completed pair of pants. The two front panels, which extend from the waist to the ankles, are stitched together at the top and bottom of the fly area. The front pocket bags have been attached and the pockets appear to be finished. There is a completed patch pocket for coins, approximately five inches high by 3-1/2 inches wide, stitched in the area of the front pocket opening on the right panel. The front pleats have also been stitched into place. The two rear sections, which also extend from the waist to the ankles, are stitched together at the top of where the back seam will join those pieces. Each of the rear sections contains a large completed patch pocket with an expandable center pleat and a finished flap. Above each of these pockets is a sewn-in dart. Two side adjustment tabs have been completed except for the button holes. The remaining pieces are merely unidentifiable articles of cut fabric.

The sample labeled B is a completed pair of woman's plain woven cotton ankle-length pants. It has a waistband with belt loops, front and rear yokes, two front inserted pockets with almost horizontal curved openings, a zipper fly front with a top button closure, a rear pocket flap (secured with a button) simulating a pocket, two pleats below each front pocket, two rear darts extending through the yoke and into the rear leg section, and a five inch opening at the bottom outside of each tapered leg secured with four buttons. Each front leg panel consists of four irregular-shaped fabric pieces that have been stitched together.

The sample labeled C is a man's pair of plain woven cotton long pants. It has a waistband with belt loops and two side adjustment tabs, two front inserted slash pockets, a zipper fly front with a top button closure, two front pleats, two rear patch pockets, each with a pocket flap secured with a single button, and a patch pocket for coins, approximately five inches high by 3-1/2 inches wide, stitched in the area of the right front pocket opening.

Samples D and E are denim jeans. Each has a waistband with belt loops, a rear yoke, a front fly with a zippered opening and single button closure, and two rear patch pockets. Sample D has two front inserted pockets with curved openings, and a small patch pocket in the area of the right front pocket opening to hold change. Sample E has no front pockets.

ISSUE:

The issue presented is whether the assembly of the sample garments in Singapore from cut pieces constitute a substantial transformation of those pieces, thus, resulting in the garments being treated as products of Singapore for tariff and textile restraint purposes.

LAW AND ANALYSIS:

Section 12.130, Customs Regulations (19 CFR 12.130) provides, in pertinent part, as follows:

(b) Country of origin. For the purpose of this section * * * a textile or textile product, subject to section 204, Agricultural Act of 1956, as amended, imported into the customs territory of the United States shall be a product of a particular foreign territory or country, or insular possession of the U.S., if it is wholly the growth, product, or manufacture of that foreign territory or country, or insular possession. However, * * * a textile or textile product, subject to section 204, which consists of materials produced or derived from, or processed in, more than one foreign territory or country, or insular possession of the U.S., shall be a product of that foreign territory or country, or insular possession where it last underwent a substantial transformation. A textile or textile product will be considered to have undergone a substantial transformation if it has been transformed by means of substantial manufacturing or processing operations into a new and different article of commerce.

(d) Criteria for determining country of origin. The criteria in paragraphs and of this section shall be considered in determining the country of origin of imported merchandise.
These criteria are not exhaustive.
One or any combination of criteria may be determinative, and additional factors may be considered.

(1) A new and different article of commerce will usually result from a manufacturing or processing operation if there is a change in:
(i) Commercial designation or identity,
(ii) Fundamental character or
(iii) Commercial use.
(2) In determining whether merchandise has been subjected to substantial manufacturing or processing operations, the following will be considered: (i) The physical change in the material or article as a result of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.
(ii) The time involved in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S. (iii) The complexity of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S. (iv) The level or degree of skill and/or technology required in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.
(v) The value added to the article or material in each foreign territory or country, or insular possession of the U.S., compared to its value when imported into the U.S.
(e) Manufacturing or processing operations. (1) An article or material usually will be a product of a particular foreign territory or country * * * when it has undergone prior to importation into the U.S. in that foreign territory or country * * * any of the following:
(v) Substantial assembly by sewing and/or tailoring of all cut pieces of apparel articles which have been cut from fabric in another foreign territory or country * * * into a completed garment (e.g. the complete assembly and tailoring of all cut pieces of suit-type jackets, suits, and shirts). (underscoring added)

The components comprising sample A are partially assembled with finished pockets and side tabs, front panels and rear panels attached, darts above rear pockets, and front pleats. Accordingly, the rule set out in ?12.130(e)(v), that the substantial assembly of all cut pieces will usually constitute a substantial transformation, has not been met. Even if all the cut pieces had been imported into Singapore completely unassembled and unworked on, it is Customs' view that the assembly of the pieces of sample A into a finished garment would not amount to a "substantial" processing and, therefore, would not change the country of origin of those cut pieces.

No information has been submitted to Customs on the condition of the cut pieces that will be imported into Singapore for assembly into samples B, C, D, and E. If those pieces are partially assembled and partially finished in the same manner as the pieces comprising sample A, then the assembly of those pieces into finished garments would not amount to a "substantial" processing and, would not change the country of origin of those cut pieces. If all the cut pieces for samples C, D, and E are imported into Singapore completely unassembled and unworked on, it is Customs' view that the assembly of those pieces into finished garments would not amount to a "substantial" processing and, therefore, would not change the country of origin of those cut pieces.

If all the cut pieces for sample B are imported into Singapore completely unassembled and unworked on, it is Customs' view that the assembly of those pieces into a finished garment would amount to a "substantial" processing and, therefore, would change the country of origin of those cut pieces. This is because of the more complex assembly process that is required for that garment--the large number of components that are pieced together, the unusual front pocket construction under the front yokes, and the extra tailoring required for the wide hips, narrow waistband, and tapered legs with buttoned openings. HOLDING:

Samples A, C, D, and E will not be substantially transformed into a product of Singapore by the assembly in that country of all cut components. If sample B is assembled in Singapore from pieces that have been partially assembled prior to the components being sent to Singapore (as in the case of sample A), then the assembly in Singapore would probably not change the country of origin of those pieces. Without specific information concerning the condition of the components entering Singapore, we are unable to definitively rule on the country of origin of the completed garment. However, sample B will be considered to be substantially transformed into a product of Singapore by the complete assembly and finishing of all cut components.

Section 177.9(b)(1), Customs Regulations (19 CFR 177.9 (b)(1), states that a ruling is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. Accordingly, the holding set forth above applies only to the specific factual situations and the merchandise identified in the ruling request. Should it subsequently be determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. If there is a change in the facts furnished, the holding in this ruling may be affected. In such an event, it is recommended that a new ruling request be submitted in accordance with Section 177.2, Customs Regulations (19 CFR 177.2).

Your samples will be retained by this office for 30 days. You may make arrangements to retrieve them by contacting Phil Robins, of my staff (202 566-8181), within that time period.

Sincerely,

John Durant, Director

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